No matter what anyone tells you, purchasing a home is a BIG deal. It marks a milestone and changes your lifestyle significantly. It also adds major costs to your monthly spending. If you are considering buying a new home soon, spring clean your spending now.

What does this mean? It refers to paying off debt, spending less on a regular basis, considering all of the costs that go into buying a home and successfully being prepared the day you move in!

With that said, here are costly areas to consider for your budget:

Down payment
Moving costs
Closing costs
Refurbishing costs (new paint, furniture)
Cleaning costs

Those are just initial expenses. Then the major costs begin, which include the new mortgage payments, the possible HOA fees, the new electric, water, cable bills, etc.

How do you successfully pull it off and come out on top? You’re already reading this article full of valuable information and considerations, which is a positive first step! Next, put the information into action.

First, make small changes that will significantly save you money in the long run. Prepare dinners instead of eating out, rent movies instead of going to the theater and walk instead of driving! Better yet, use your spare time to declutter your storage areas and to dispose of what you will not be bringing to the new house. This chore might just take up all your free time and therefore allow you to save money!

Use this newly saved money to pay off your credit card and loan debt. Eliminating or decreasing major monthly payments will lessen your financial burden and will help you acquire a pre-approval.

Get preapproved for a mortgage at Guaranteed Rate. This step is vital in making sure that you are fully aware of your new costs and how they will fit into your current financial situation. Also, in this economy, preapprovals are a major bonus in the eyes of home sellers.

Head over to Guaranteed Rate. Before you search for a new home, map out your current income and your monthly costs so that you know exactly what you can afford. Keep this reasonable price range in mind as you search for a home.

Costs to consider with a new home:
Monthly mortgage payment
Down payment
Electric, water, cable, phone bills
HOA fees
Insurance
Repairs

Look for homes with Energy Star appliances, well systems, upgraded insulation or skylights. These types of features can lower your monthly payments. Consider what perks you will obtain from HOA fees and if they are worth it for your lifestyle. Always keep a practical scenario in mind.

In this economy, knowing what you can and cannot afford is your best bet on a healthy future. If you keep this advice in mind, you will decrease your stress levels, increase your financial stability and successfully live the American Dream!